Indian shares fell on Monday, following losses in Asian markets, as investor sentiment was subdued after Iran’s retaliatory attack on Israel over the weekend spurred fears of a wider regional conflict. The NSE Nifty 50 fell 1.1% to 22,272, while the S&P BSE Sensex lost 1.14% to 73,399, at close.

Except for the Oil & Gas, all the sectors ended the day in the red. Nifty Media and PSU Bank emerged as the top losers due to profit booking, followed by declines in the IT and Financial sectors. The Midcap and Smallcap indices also recorded declines of over 1.5% each.

Here’s how analysts read the market pulse:

“Nifty recently dipped below a crucial moving average, following a breakdown in consolidation. Additionally, the Relative Strength Index (RSI) indicates a bearish crossover. Short-term sentiment appears bearish, although a significant decline isn’t anticipated at present. Instead, the index is likely to fluctuate between 22200 and 22400. Sellers are expected to persist as long as the index remains below the 22400 mark,” Rupak De of LKP Securities.

Jatin Gedia of Sharekhan, said, “On the daily charts, we can observe that Nifty is in the process of retracing the rise it has witnessed from 22710 – 22776. The key 50 and 61.82% Fibonacci retracement levels are placed at 22240 – 22117. Thus, in case of a bounce towards 22350 – 22370, it should be used as a selling opportunity. On the upside, the gap area formed on Monday in the range 22420 – 22500 shall act as an immediate hurdle from a short term perspective.”

That said, here’s a look at what some key indicators are suggesting for Tuesday’s action:

US market

Wall Street’s main stock indexes rose on Monday after a bruising sell-off in the previous session on the back of disappointing earnings from some big U.S. banks, while escalating tensions in the Middle East made investors wary.

All three major indexes fell more than 1% on Friday, registering weekly losses.

At 9:37 a.m. ET, the Dow Jones Industrial Average was up 342.51 points, or 0.90%, at 38,325.75, the S&P 500 was up 36.24 points, or 0.71%, at 5,159.65, and the Nasdaq Composite was up 69.03 points, or 0.43%, at 16,244.12.

European shares

European shares inched up on Monday, with caution around Middle East tensions at the fore, while Temenos was on course for its best day in more than 15 years after saying Hindenburg Research’s allegations were found to be incorrect.

The pan-European STOXX 600 gained 0.3% as of 0853 GMT, with the defence sector among top gainers, after Iran launched explosive drones and missiles at Israel over the weekend in retaliation for a suspected Israeli attack on its consulate in Syria on April 1.

Tech View: Shooting Star candle

Nifty on Monday fell 247 points to form a Shooting Star candle on the daily chart and violated the crucial support of 20-day EMA placed at 22,370.

The larger degree positive chart pattern like higher tops and bottoms is intact on the weekly chart and present weakness could be in line with the formation of a new higher bottom of the pattern. Still, there is no confirmation of any higher bottom reversal yet at the lows. Nifty is currently nearing weekly 10 -period EMA around 22,200 levels. The said moving average has offered support for the market in the last few months, said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on Delhivery.

The MACD is known for signalling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.

Stocks signalling weakness ahead

The MACD showed bearish signs on the counters of ONGC, Chennai Petroleum Corporation, Oil India, Maruti Suzuki, Cholamandalam Financial Holdings, and Linde India among others. A bearish crossover on the MACD on these counters indicates that they have just begun their downward journey.

Most active stocks in value terms

ONGC (Rs 2,083 crore), RIL (Rs 1,895 crore), HDFC Bank (Rs 1,757 crore), TCS (Rs 1,676 crore), Hindalco (Rs 1,666 crore), Tata Motors (Rs 1,259 crore), and Infosys (Rs 1,255 crore) were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

ONGC (Shares traded: 7.5 crore), Tata Steel (Shares traded: 6.6 crore), Hindalco (Shares traded: 2.7 crore), NTPC (Shares traded: 1.8 crore), Power Grid (Shares traded: 1.3 crore), Tata Motors (Shares traded: 1.2 crore), and HDFC Bank (Shares traded: 1.1 crore) were among the most traded stocks in the session on NSE.

Stocks showing buying interest

Shares of Aster DM Healthcare, Anand Rathi Wealth, Thermax, HEG, Exide Industries, Hindalco, and Indus Towers among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.

Stocks seeing selling pressure

Shares of HUL, Vedant Fashions, and Dabur India hit their 52-week lows, signalling bearish sentiment on the counters.

Sentiment meter favours bears

Overall, market breadth favoured bears as 3,043 stocks ended in the red, while 877 names settled in the green.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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